Abstract:
The importance of corporate governance has grown in South Asian countries
due to the rising demand for cash and other financial resources from businesses. A risk
management committee may be formed, and bank performance can be sustained
through good corporate governance, administering an organization following the laws
and regulations. This study aims to explore the relationship between corporate
governance, risk management, and financial efficiency in both Islamic and traditional
banks. With the growing interest in the financial performance of banks, it is important
to understand the impact of these factors on the overall efficiency of banks. The study
analyzed the influence of corporate governance and risk management on the
performance of both Islamic and conventional banks, taking into account bank size as
control variable. Good corporate governance practices can improve the risk
management of banks and enhance their overall financial performance. Risk
management is another important factor that affects the financial performance of banks.
Effective risk management practices help banks to identify, assess, and manage
potential risks that can impact their financial performance. This study will provide the
deep insight of the impact of corporate governance and risk management on the
financial performance of banks in SAARC region by taking the data of Islamic and
conventional banks from seven countries. Fixed effect regression analysis will be used
to find the results. Finally, the study provides recommendations for regulators and
policy makers on ways to improve the financial efficiency of banks by increasing their
size and internal governance. The findings of the study will be useful for policymakers,
regulators, and banks in developing strategies to improve the financial performance of
banks, and to promote the stability and prosperity of the banking sector.
